27 August 2009 - IMI plc 2009 Interim Results

IMI plc, the international engineering group, today issued its Interim Management Report for the six months ended 30 June 2009.

 

 2009   2008 restated 3   % change
Revenue £900m
   £911m  

-1
           
Segmental operating profit
Adjusted profit before tax1		 £97.4m
£86.4m		   £120.6m
£114.2m		   -19
-24
           
As reported:          
    Operating profit £89.5m   £108.8m   -18
    Profit before tax £79.7m   £103.7m   -23
             
Adjusted earnings per share2 18.5p   24.5p    
Basic earnings per share 17.0p   22.2p    
           
Restructuring costs £17.5m   £5.6m    
           
Net borrowings4 £264m   £299m    
           
Dividend 8.0p   8.0p    
           
1 before exceptional items (restructuring, investigation costs and fines, acquired intangible amortisation and impairment and financial instruments excluding economic hedge contract gains and losses) totalling £6.7m (2008:  £10.5m).
2 before the after tax cost of exceptional items totalling £4.6m (2008:  £7.2m).
3 restated to include “financial instruments excluding economic hedge contract gains and losses” within exceptional items. See note 12.  Reported adjusted profit before tax for the period to 30 June 2008 is £1.3m lower.
4 net borrowings as at 30 June 2009 and comparable as at 31 December 2008.

 

Norman Askew, Chairman of IMI commented:

“Underlying levels of demand would appear to have stabilised following the very sharp reductions seen in some of our businesses in the early part of the year.

Our early and comprehensive actions taken to reallocate sales and engineering resource in support of more resilient end markets, to align capacity to lower levels of demand, to defend group margins and to maximise cash conversion have proved highly successful with Group operating margins remaining in double digits.  Net borrowings have reduced by £35m to £264m and the dividend has been maintained.

We are not assuming any improvement in general economic conditions during the second half but, as and when it materialises, we are well placed to benefit given the restructuring already undertaken and the further expansion of our low cost manufacturing capabilities.”

To read the full press release in Acrobat PDF format please click here.

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